Variable Annuities
Variable Annuities
A variable annuity offers several key features: the potential for tax-deferred investment growth based on market performance, guaranteed rates of growth that when elected provide a guaranteed lifetime income stream, and based on the contract, the potential for guaranteed death benefits to your beneficiaries. The investment options for a variable annuity are typically profiles that invest in stocks, bonds, money market instruments, or some combination of the three.
Investors should consider the investment objectives of a variable annuity carefully before investing. An investment in a variable annuity involves investment risk, including possible loss of principal. Variable annuities are designed for long-term investing. The contract, when redeemed, may be worth more or less than the total amount invested. Variable annuities are subject to insurance related charges including mortality and expense charges, administrative fees and the expenses associated with the underlying funds. Withdrawals prior to age 59½ may result in a 10% IRS tax penalty, in addition to any ordinary income tax. The guarantee of the annuity is backed by the financial strength of the underlying insurance company. Investment sub account value will fluctuate with changes in market conditions.